While it is true that mortgage lenders & creditors typically give people with a good a credit rating, less scrutiny to refinance their home or condo mortgage. However, there is hope though for refinancing a home loan even if you have less than perfect credit. We will discuss what a bad credit report means, and how to improve your credit score, and how that affects your mortgage refinancing chances.
Typically, mortgage lenders use FICO credit score when looking over a potential borrower's credit report. In the refinance industry, the FICO credit score is the most widely used determining factor in credit worthiness for people desiring a mortgage or refinancing. A FICO score is all of your credit information, analyzed, and given a single score.
The 3 determining factors mortgage lenders use when giving you a credit score are.
Payment history – Paying off loans or credit card debt early is a bonus. Amounts of credit issued and used arealso factored in
Credit History Length – Basically, how long you have been making consistent credit payments. The longer the better. Also the type of credit issued.
New Credit – The number and amount if recently issued credit.
Improve your credit score by paying bills on time. Clear any old debts off your record, the sooner the better. Make sure the credit you do have stays under control, make payments early and more than the minimum.
Always get a credit report before doing any of this. Check my links for refinancing lenders quotes mortgage calculators and free credit reports.
-M Petrone
http://www.RefinancingCondo.com
I have been in mortgage lending for over 15 years and have since retired. I provide free useful information to would be home refinancing prospects. My website http://www.refinancingcondo.com is updated daily with insider tips, tricks, and knowledgeable articles written by professionals.
http://www.refinancingcondo.com
Article Source: http://www.articlesbase.com/mortgage-articles/refinance-your-mortgage-with-bad-credit-or-bankruptcy-676014.html
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